Morgan Stanley cuts targets on retailers (Reuters)

Wednesday July 9, 10:20 am ET (Reuters) - Retailers may have a challenging 2009 as sales at its domestic stores continue to fall and in the absence of a stimulus like this year's tax rebates, analysts at Morgan Stanley said, as they lowered their price targets and 2009 earnings estimates across the sector. Morgan Stanley cut its 2009 earnings-per-share estimates by 3 percent, on average, and price targets by 8 percent. Decline in home values, rising unemployment, higher food and fuel costs, and a reduction in the level of construction spending - all point toward continued pressure on retailers through the end of 2008, Morgan Stanley said in a note to clients. "While we believe that around $15 billion of stimulus checks will make it into retail sales and may provide a modest boost to retailer earnings, the checks are... [read full story]